15 April 2008
Environmental Goals Link NGOs and Business, Editor Says
Ask America webchat transcript, April 15
Brad Kenney, technology/environmental editor with Industry Week magazine, discussed the new partnerships being forged by nongovernmental organizations and businesses because of mutual environmental concerns in an April 15 Ask America webchat.
Following is the transcript:
(begin transcript)
U.S. DEPARTMENT OF STATE
Bureau of International Information Programs
Ask America Webchat Transcript
Environmental Concerns Forge New Partnerships
Guest: Brad Kenney
Date: April 15, 2008
Time: 10:00 a.m. (1400 GMT)
Moderator: Welcome to today's webchat! We look forward to hearing from you. You may begin asking your questions now or wait until the live event takes place at 1400 GMT.
Moderator: Please send your questions in English. Thank you!
Brad Kenney: Hi everyone, I’m very pleased to be chatting with the world about environmental NGO and business cooperation. I have been writing about this “green business” space for a long time, but have noticed recently that there is a lot more to write about, and at least some of this increase is a result of these types of partnerships.
Over the next hour or so, I look forward to answering your questions to the best of my ability, and would also reference you to read the excellent e-Journal project that I was honored to participate in for an overview of this topic.
Additionally, you can read more about how global manufacturing is "going green" at IndustryWeek's Making Green site: http://www.IndustryWeek.com/makinggreen
Moderator: Brad Kenney is the author of an article in the latest U.S. State Department eJournal USA “The Greening of U.S. Corporations.” His article “NGOs and Business — Shared Goals, Mutual Trust” can be found at:
http://www.america.gov/st/env-english/2008/March/20080312162449WRybakcuh0.8249105.html
Question [Feroz]: Do you think that this environmental concerns will finally help realize the Mutinationals to abide by the Corporate Social Responsibility to simply its yet another opportunity that the Business community will exhaust?
Answer [Brad Kenney]: If by "exhaust" you mean, another opportunity that the business community will miss, then no -- I don't think that the business community will miss out on this opportunity. In fact, I would say that the most progressive and forward-thinking elements of the business community have gotten the most advantage out of these environmental opportunities. (And there are still many opportunities left for the rest of the pack!)
If by "exhaust" you mean, "run out of" opportunities, I really think there is no end to the amount of green improvements that a company can make. Just look at the number of different technologies there are available -- supply chain optimization, energy monitoring tools, maintenance and asset management tools, web conferencing tools (to save on executive and employee travel), e-invoicing (to save on paper)...I could go on.
You make a great point, though -- these environmental initiatives are just one part of the corp. soc. resp. (CSR) toolbox, and are just one leg in the chair called the "triple bottom line." However, because the impacts that we will feel from continuing to ignore climate change are potentially so large, it makes the entire "triple bottom line" package more important.
So my opinion is, because the topic resonates with consumers (who are the ultimate drivers of corporate behavior), I believe that "green" initiatives should help push all aspects of corporate social responsibility programs forward in the global enterprise.
Q [Chat Participant]: who benefits more from this partnerships? Business or NGO? In my opinion the business will gain more because of the public relations while NGO must make a compromise and has weaker bargaining power. How do you respond?
A [Brad Kenney]: I believe that they both benefit -- it's not a 'zero sum' game, where the benefits for one decrease the benefits of the other. In fact, if you ask around to the major environmental NGOs (and I just did this), a lot of them are helped by the fact that the corporations have the marketing budgets to get these programs into the public eye, and therefore help other fundraising efforts.
I also think that, instead of taking away from the power of the NGOs, that these partnerships actually enhance their power to get things done in real ways. Business will happen, regardless of whether it's ethical or green or not, so having embedded NGO expertise in the business community helps "steer the ship" of the business.
The best way that I've heard this explained was during an interview I did with Suzanne Apple at WWF, who remarked that the difference between working against business and with business was dramatic -- instead of being out in the forest trying to stop illegal logging for paper mills, they were working in the paper companies making sure that the buying decisions to purchase that illegally-logged wood weren't happening in the first place.
In short, business definitely benefits, but so do the NGOs and, by extension, the planet.
Q [Regina]: Mr. Kenney, On Kyoto--With more US corporations going "green" do you believe this may influence the US to finally ratify Kyoto protocol?
A [Brad Kenney]: I'll say this -- some of the largest, oldest manufacturing companies in the U.S. are lobbying the U.S. government heavily to pass legislation that meets some sort of global standard. It's a good idea for these global companies, as it makes for a uniform worldwide legislative environment that makes doing business easier.
I also think that, despite this momentum, we're going to have to wait until the next administration to make any significant progress on adoption of progressive multi-lateral carbon management accords -- look at what happened in Bali and that much is clear.
I do think, barring some sort of political upheaval between now and November (the next U.S. election -- perhaps you've heard that we've got one coming up?) that the next White House will be much greener than the present.
Moderator: A wealth of resources on the environment and related issues can be found at America.gov:
http://science.america.gov/science/environ/index.html
Q [Josip]: But what about the biggest pollutres--China, India, Russia. All three have powerful business interest but weak NGO structure. Can you see any progress there?
A [Brad Kenney]: First off, I would say that the U.S. is probably on any list of "biggest polluters" (although, as I have said, we are improving on most if not all metrics) and we have the strongest NGO structure in the world!
But to your point -- international and domestic NGOs take up where governments leave off, and we have a responsibility to ensure that environmental NGOs (as well as NGOs generally) have a "footprint" in the countries where it matters most.
I know the strong trade relationships between China and the U.S., for example, coupled with the strong relationships between U.S. companies and global NGOs, means that these NGOs have been able to establish a more significant presence and make the necessary government contacts to ensure that business is done in the cleanest, greenest manner possible.
I will say, too, that outside events can sometimes trigger positive change, as well -- just look at what is happening in China right now in response to the Olympics. A significant number of factories are being shut down for environmental offenses, and new projects are not getting financing if they would pollute, etc. so the point is, international cooperation leads to visibility which, with some hard work on our behalf by the NGO community, leads to more sustainable business practices.
Moderator: We're still accepting your questions.
Q [Chat Participant]: one more question: what industry or business most often makes partnership with NGO?
A [Brad Kenney]: I write mostly about manufacturing, so my knowledge base is biased towards the manufacturing world, but I know from covering this "green business" world that manufacturing probably is the most willing to make these types of intense partnerships, since manufacturers often have the most progress to make!
For a recent feature, I just interviewed an Eaton executive, Joe Wolfsberger who is vice president for environmental health and safety, and he said that Eaton partners with a number of NGOs and outside organizations to improve its business practices. These arrangements are valuable because they bring outside expertise into the business decision-making process, as well as providing networking and best practice sharing opportunities.
For example, Eaton participates in the Carbon Disclosure Project, which exchanges shareholder and company information on the business risks and opportunities presented by climate change and greenhouse gas emissions data. They also participate in the Business Round Table S.E.E. Initiative and Climate Resolve programs.
Working with Environmental Defense has helped Eaton get their hybrid electric truck technology into fleets like FedEx, as well as spread the word to other manufacturers (Eaton's Sandy Cutler just helped produce a TV commercial with Environmental Defense for the U.S. market lobbying our U.S. government to make investments in helping to develop these new green technologies).
From my research, I can tell you that GE is another large manufacturer that engages in a number of partnerships that serve different functions.
The World Resources Institute/World Business Council for Sustainable Development greenhouse gas protocol is widely used by GE and others as a guideline for making a emissions inventory process. Like Eaton, GE is also a member of the US Climate Action Partnership, a lobbying group pressuring for tough carbon emissions regulation.
These are just two examples of partnerships that leading manufacturers are making I uncovered during the research for my recent carbon footprint feature in IndustryWeek.
All of this is above and beyond the normal scope of business activities, but at the end of the day these large businesses obviously see large business interests in gaining the expertise of these many partners.
Q [BRUENER B. NEWTON]: How the global community can help NGOs of Pakistan for their running projects?
A [Brad Kenney]: The global community absolutely has a responsibility to help Pakistan deal with its environmental challenges -- we are all living on the same planet! I know the World Business Council for Sustainable Development formed a Pakistan BCSD in 2006, and the WRI has been doing its Orangi Pilot Project for a number of years, so you've got a couple of big names in-country. The best thing about NGOs is that they're staffed by people who want to help, so if you reach out, I'm sure they will either try to help you themselves or at least help direct you to the appropriate resources.
Q [princerobert]: What kind of opportunities for students in the clean energy industry?
A [Brad Kenney]: If I were a student right now, I would be absolutely looking into the potential for clean energy studies. Most industrialized economies are already looking to make the switch to clean or renewable production, and in fact there is a trend that I've written about for manufacturers to place solar panels on their rooftops, turning a formerly unused space into a power plant.
Biofuel is another boom industry, especially where re-using agricultural or manufacturing waste is concerned -- after the capital expenditure, it's free energy for businesses to use.
Wind turbine development and manufacture is huge, especially in places like here in Ohio, where we have a long-established tradition (and well-entrenched supply chain) for metalforming and bearing/gear/manufacturing etc. I am actually on the advisory board for the Manufacturing Action Team's Wind Working Group here in Ohio, and we are seeing a lot of momentum and development of this supply chain as it shifts toward turbine manufacturing.
Fuel cells are another growing sector -- although they might not ever crack the consumer automotive market, they are being used extensively for lift trucks (forklifts) in distribution centers around the U.S. and the world.
From my own personal perspective as a student, here in the U.S., some of the most exciting educational opportunities, from engineering (for example, studying how the electrical grid can be used to store energy from electric cars) to business (I myself am less than a year away from a sustainable MBA) are in "clean" or "green" areas.
So I would say that the kind of opportunities available are huge, and growing.
Brad Kenney: I hope this has been an informative experience for you, and would like to thank my own NGO and business partners for allowing me to interview them at length for my many assignments covering this space -- I am excited to have so much to talk and write about!
I would also like to thank the U.S. Department of State for arranging and overseeing this project with such good-natured professionalism.
I would like to conclude by offering a few links for further research. If you'd like to read about "green manufacturing" news, please visit: http://www.IndustryWeek.com/makinggreen For individual company Q&As (with the likes of Stonyfield, Interface, 3M and HP) visit: http://www.IndustryWeek.com/greenspot
For general green business news, I recommend these two sites: http://www.environmentalleader.com
Thanks for your time and attention, and I wish the best for everyone in all countries in this beautiful world we call home.
Best,
Brad Kenney
Editor, Technology & Environment
IndustryWeek Magazine
Moderator: We wish to thank Brad Kenney for joining us today. The webchat is now closed. A full transcript of today's webchat will be published (usually within one business day) to our Ask America homepage.
(Speakers are chosen for their expertise and do not necessarily reflect the views or policies of the U.S. Department of State.)
(end transcript)
(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
